Essential Properties Realty Trust (NYSE:EPRT) versus Realty Income (NYSE:O) Direct Survey
Essential Properties Real Estate Trust (NYSE: EPRT – Get a rating) and property income (NYSE: O – Get a rating) are both finance companies, but which is the better investment? We’ll compare the two companies based on earnings strength, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.
Risk and Volatility
Essential Properties Realty Trust has a beta of 1.4, meaning its stock price is 40% more volatile than the S&P 500. In comparison, Realty Income has a beta of 0.8, meaning its stock price is 20% less volatile than the S&P 500.
Benefits and evaluation
This table compares the gross revenue, earnings per share and valuation of Essential Properties Realty Trust and Realty Income.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Essential Properties Real Estate Trust||$230.23 million||2:60 p.m.||$95.72 million||$0.81||31.64|
|Real estate income||$2.08 billion||20.87||$359.46 million||$0.94||77.25|
Realty Income has higher revenue and profit than Essential Properties Realty Trust. Essential Properties Realty Trust trades at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Essential Properties Realty Trust pays an annual dividend of $1.04 per share and has a dividend yield of 4.1%. Realty Income pays an annual dividend of $2.96 per share and has a dividend yield of 4.1%. Essential Properties Realty Trust pays out 128.4% of its earnings as dividends, suggesting it may not have enough earnings to cover its dividend payment in the future. Realty Income pays out 314.9% of its earnings as a dividend, suggesting it may not have enough earnings to cover its dividend payment in the future. Essential Properties Realty Trust has increased its dividend for 3 consecutive years and Realty Income has increased its dividend for 28 consecutive years. Realty Income is clearly the better dividend stock, given its higher yield and longer history of dividend growth.
Institutional and Insider Ownership
97.0% of the shares of Essential Properties Realty Trust are held by institutional investors. By comparison, 82.8% of Realty Income shares are held by institutional investors. 1.4% of the shares of Essential Properties Realty Trust are held by insiders of the company. By comparison, 0.2% of Realty Income shares are held by insiders of the company. Strong institutional ownership indicates that large fund managers, hedge funds, and endowments believe a stock is poised for long-term growth.
This is a breakdown of the current ratings and recommendations for Essential Properties Realty Trust and Realty Income, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Essential Properties Real Estate Trust||0||2||4||0||2.67|
|Real estate income||0||3||5||0||2.63|
Essential Properties Realty Trust currently has a consensus price target of $31.07, suggesting a potential upside of 21.23%. Realty Income has a consensus price target of $77.80, which suggests a potential upside of 7.15%. Given Essential Properties Realty Trust’s higher consensus rating and likely higher upside, equity research analysts clearly believe that Essential Properties Realty Trust is more favorable than Realty Income.
This table compares the net margins, return on equity and return on assets of Essential Properties Realty Trust and Realty Income.
|Net margins||Return on equity||return on assets|
|Essential Properties Real Estate Trust||41.58%||4.93%||3.09%|
|Real estate income||17.25%||2.32%||1.31%|
Essential Properties Realty Trust beats Realty Income on 9 out of 17 factors compared between the two stocks.
About Essential Properties Real Estate Trust (Get a rating)
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns and manages single-tenant properties in the United States. The Company leases its properties to mid-market businesses, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education childhood, groceries, and health and fitness on a long-term basis. . As of December 31, 2021, it has a portfolio of 1,451 properties. The Company is considered a real estate investment trust for federal income tax purposes. It would generally not be subject to federal corporate income tax if it distributed at least 90% of its taxable income to its shareholders. The company was founded in 2016 and is based in Princeton, New Jersey.
About real estate income (Get a rating)
Realty Income, The Monthly Dividend Company, is an S&P 500 company dedicated to providing shareholders with reliable monthly income. The company is structured as a REIT and its monthly dividends are supported by cash flow from over 6,500 real estate properties held under long-term lease agreements with our commercial customers. To date, the company has declared 608 consecutive monthly common stock dividends in its 52 years of operation and has increased the dividend 109 times since Realty Income’s IPO in 1994 (NYSE:O). The company is a member of the S&P 500 Dividend Aristocrats Index. Additional information about the Company may be obtained on the Company’s website at www.realty income.com.
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